BOSTON, Jan. 26, 2016 (GLOBE NEWSWIRE) --

Meridian Bancorp, Inc. (the "Company" or "Meridian") (NASDAQ:EBSB), the holding company for East Boston Savings Bank (the "Bank") announced net income of $6.9 million, or $0.13 per diluted share, for the quarter ended December 31, 2015 compared to $6.0 million, or $0.11 per diluted share, for the quarter ended December 31, 2014. For the year ended December 31, 2015, net income was $24.6 million, or $0.46 per diluted share compared to $22.3 million, or $0.42 per diluted share, for the year ended December 31, 2014. The Company's return on average assets was 0.80% for the quarter ended December 31, 2015 compared to 0.75% for the quarter ended December 31, 2014. For the year ended December 31, 2015, the Company's return on average assets was 0.74% compared to 0.75% for the year ended December 31, 2014. The Company's return on average equity was 4.67% for the quarter ended December 31, 2015 compared to 4.19% for the quarter ended December 31, 2014. For the year ended December 31, 2015, the Company's return on average equity was 4.19%, down from 5.69% for the year ended December 31, 2014, reflecting the net cash proceeds of $302.3 million raised in the Company's second step common stock offering completed on July 28, 2014.

Richard J. Gavegnano, Chairman, President and Chief Executive Officer, said, "It is my great pleasure to report record net income of $6.9 million, or $0.13 per diluted share, for the fourth quarter of 2015 and $24.6 million, or $0.46 per diluted share, for the year 2015. Our core pre-tax income, which excludes gains on sales of securities, increased $3.1 million, or 43%, to $10.3 million for the fourth quarter and $6.9 million, or 25%, to $34.1 million for the year 2015 from the same periods last year due to the continuing rise in net interest income and expansion of net interest margins along with significant improvement in asset quality. We closed 2015 with total assets of $3.5 billion, total loans of $3.1 billion and total deposits of $2.7 billion. Other key achievements during the year included the initiation of a 5% stock repurchase program, the commencement of quarterly dividends at $0.03 per share and the opening of new branches in Boston's Dorchester neighborhood and in Brookline. We are also looking forward to entering Boston's Chinatown district this March with our thirtieth branch as we continue to consider new franchise expansion opportunities within the greater Boston area."

Net interest income increased $3.7 million, or 15.8%, to $27.3 million for the quarter ended December 31, 2015 from $23.6 million for the quarter ended December 31, 2014. The interest rate spread and net interest margin on a tax-equivalent basis were 3.17% and 3.39%, respectively, for the quarter ended December 31, 2015, up from 2.91% and 3.13%, respectively, for the quarter ended December 31, 2014. For the year ended December 31, 2015, net interest income increased $14.7 million, or 16.7%, to $102.9 million from $88.2 million for the year ended December 31, 2014. The net interest rate spread and net interest margin on a tax-equivalent basis were 3.09% and 3.31%, respectively, for the year ended December 31, 2015, up from 3.00% and 3.19%, respectively, for the year ended December 31, 2014. The increases in net interest income were due primarily to loan growth along with declines in the cost of funds, partially offset by deposit growth for the fourth quarter and year ended December 31, 2015 compared to the same periods in 2014.

The Company's yield on interest-earning assets on a tax-equivalent basis increased three basis points to 3.94% for the year ended December 31, 2015 compared to 3.91% for the year ended December 31, 2014, while the cost of funds declined five basis points to 0.75% for the year ended December 31, 2015 compared to 0.80% for the year ended December 31, 2014. The increase in interest income was primarily due to growth in the Company's average loan balances of $374.4 million, or 15.4%, to $2.802 billion, partially offset by a decrease in the yield on loans on a tax-equivalent basis of four basis points to 4.35% for the year ended December 31, 2015 compared to 4.39% for the year ended December 31, 2014. The increase in interest expense on deposits was primarily due to the growth in average total deposits of $209.9 million, or 8.8%, to $2.587 billion, partially offset by the decline in the cost of average total deposits of five basis points to 0.71% for the year ended December 31, 2015 compared to 0.76% for the year ended December 31, 2014. The decrease in interest expense on borrowings was primarily due to the reduction in average borrowings of $42.9 million, or 22.7%, to $146.4 million, partially offset by an increase in the cost of average borrowings of four basis points to 1.35% for the year ended December 31, 2015 compared to 1.31% for the year ended December 31, 2014.

Mr. Gavegnano noted, "Remarkably, we have experienced net loan growth of $1.7 billion over the last four years for a compounded annual growth rate of 23% and a steady rise in net interest income. During 2015 alone, our loan portfolio grew $401 million, or 15%, on commercial loan originations of $1.2 billion. As a result of this growth along with stable loan yields and a decline in the cost of funds, net interest income rose each quarter while the net interest margin expanded throughout the year."

The Company's provision for loan losses was $544,000 for the quarter ended December 31, 2015, down from $1.8 million for the quarter ended December 31, 2014, primarily due to recoveries on loans, reductions in problem loans and other improving asset quality trends, partially offset by growth in commercial loans. For the year ended December 31, 2015, the provision for loan losses was $6.7 million, up from $3.3 million for the year ended December 31, 2014, reflecting loan growth in all commercial categories during the year ended December 31, 2015 and a $2.3 million provision and charge-off related to a construction loan relationship during the second quarter of 2015. Changes in the provision for loan losses were also based on management's assessment of historical charge-off trends, an ongoing evaluation of credit quality and current economic conditions. The allowance for loan losses was $33.4 million or 1.08% of total loans outstanding at December 31, 2015, compared to $28.5 million or 1.06% of total loans outstanding at December 31, 2014. Net recoveries totaled $274,000 for the quarter ended December 31, 2015, or less than 0.01% of average loans outstanding on an annualized basis, and net charge-offs totaled $1.7 million for the year ended December 31, 2015, or 0.06% of average loans outstanding.

Non-accrual loans decreased $164,000, or 0.5%, to $31.3 million, or 1.02% of total loans outstanding, at December 31, 2015, from $31.5 million, or 1.18% of total loans outstanding, at December 31, 2014, primarily due to decreases of $5.4 million in one- to four-family loans, $1.6 million in commercial real estate loans and $514,000 in home equity loans, substantially offset by an increase of $7.4 million in construction loans. The increase in non-accrual construction loans during the year ended December 31, 2015 was primarily due to a $14.0 million construction loan placed on non-accrual status following a $2.3 million charge-off during the second quarter of 2015. Non-performing assets decreased $1.3 million, or 3.7%, to $31.3 million, or 0.89% of total assets, at December 31, 2015, from $32.6 million, or 0.99% of total assets, at December 31, 2014. Non-performing assets at December 31, 2015 were comprised of $15.8 million of construction loans, $9.3 million of one- to four-family mortgage loans, $3.7 million of commercial real estate loans, $1.8 million of home equity loans and $805,000 of commercial and industrial loans.

Mr. Gavegnano commented, "We reduced our total non-performing assets across all loan types during the fourth quarter of 2015 by a total of $4.4 million, or 12%, due to effective credit monitoring, collection and workout efforts. Such efforts included significant progress toward resolution and collection of the $14.0 million non-accrual multi-family construction loan and the related collateral properties in Boston. Without this non-accrual loan relationship, our non-performing assets would have declined by $14.7 million during 2015 to $17.8 million at December 31, 2015, or 0.51% of total assets, while the Bank would have been in a net recovery position of $556,000 for the year 2015."

Non-interest income decreased $1.7 million, or 38.5%, to $2.7 million for the quarter ended December 31, 2015 from $4.3 million for the quarter ended December 31, 2014, primarily due to a decrease of $1.9 million in gain on sales of securities, net, partially offset by increases of $161,000 in customer service fees and $79,000 in loan fees. For the year ended December 31, 2015, non-interest income decreased $3.0 million, or 18.8%, to $13.0 million from $16.1 million for the year ended December 31, 2014, primarily due to a decrease of $3.8 million in gain on sales of securities, net, partially offset by increases of $431,000 in customer service fees and $326,000 in loan fees.

Non-interest expenses increased $2.2 million, or 12.7%, to $19.2 million for the quarter ended December 31, 2015 as compared to $17.0 million for the quarter ended December 31, 2014, primarily due to increases of $1.3 million in salaries and employee benefits, $253,000 in occupancy and equipment, $523,000 in marketing and advertising and $138,000 in other general and administrative expenses, partially offset by a decrease of $166,000 in foreclosed real estate expense. For the year ended December 31, 2015, non-interest expenses increased $5.3 million, or 7.8%, to $72.7 million from $67.4 million for the year ended December 31, 2014, primarily due to increases of $3.3 million in salaries and employee benefits, $618,000 in occupancy and equipment, $688,000 in data processing, $814,000 in marketing and advertising and $164,000 in professional services, partially offset by decreases of $204,000 in foreclosed real estate expense and $142,000 in deposit insurance assessments. The increases in salaries and employee benefits expense were primarily due to employee compensation increases and staffing growth during the current year along with expenses associated with the grant of restricted stock and stock options to the Company's directors, officers and employees in November 2015. The increases in occupancy and equipment include costs associated with the opening of new branches located in Dorchester and Brookline. The increases in data processing expense reflected a cost reduction during the second quarter of 2014 along with a scheduled contractual increase and business growth during the current year. The increases in marketing and advertising expense reflected the Bank's new and expanded advertising campaign in our Boston area market. The Company's efficiency ratio improved to 63.81% for the quarter ended December 31, 2015 from 65.21% for the quarter ended December 31, 2014. For the year ended December 31, 2015, the efficiency ratio improved to 64.05% from 68.84% for the year ended December 31, 2014.

Mr. Gavegnano added, "The improvement in our efficiency ratio over the last three years has been the direct result of the steady rise in net interest income driven by strong loan growth in recent years. We were able to hold our efficiency ratio below 64% in the fourth quarter even with the costs associated with new branches and the grants made under our new equity incentive plan. We will continue to exercise prudent expense control as we move forward with our franchise growth plans."

The Company recorded a provision for income taxes of $3.4 million for the quarter ended December 31, 2015, reflecting an effective tax rate of 33.1%, compared to $3.1 million, or 33.7%, for the quarter ended December 31, 2014. For the year ended December 31, 2015, the provision for income taxes was $12.0 million, reflecting an effective tax rate of 32.7%, compared to $11.1 million, or 33.3%, for the year ended December 31, 2014. The changes in the income tax provision and effective tax rate were primarily due to changes in the components of pre-tax income.

Total assets increased $246.0 million, or 7.5%, to $3.525 billion at December 31, 2015 from $3.279 billion at December 31, 2014. Net loans increased $396.3 million, or 15.0%, to $3.045 billion at December 31, 2015 from $2.649 billion at December 31, 2014. The net increase in loans for the year ended December 31, 2015 was primarily due to increases of $182.5 million in commercial real estate loans, $155.6 million in construction loans, $69.2 million in commercial and industrial loans and $7.7 million in multi-family loans, partially offset by decreases of $10.1 million in one- to four-family loans and $3.4 million in home equity loans. Cash and due from banks decreased $109.4 million, or 53.2%, to $96.4 million at December 31, 2015 from $205.7 million at December 31, 2014. Securities available for sale decreased $61.9 million, or 30.4%, to $141.6 million at December 31, 2015 from $203.5 million at December 31, 2014.

Total deposits increased $239.1 million, or 9.5%, to $2.743 billion at December 31, 2015 from $2.504 billion at December 31, 2014. Core deposits, which exclude certificate of deposits, increased $58.5 million, or 3.3%, to $1.854 billion, or 67.6% of total deposits, at December 31, 2015. Total borrowings decreased $4.7 million, or 2.7%, to $167.2 million at December 31, 2015 from $171.9 million at December 31, 2014.

Total stockholders' equity increased $10.4 million, or 1.8%, to $588.1 million at December 31, 2015, from $577.7 million at December 31, 2014. The increase for the year ended December 31, 2015 was due primarily to $24.6 million in net income and $3.3 million related to stock-based compensation plans, partially offset by decreases of $5.0 million in accumulated other comprehensive income, reflecting a decrease in the fair value of available for sale securities, a $9.4 million reduction in additional paid-in capital resulting from the Company's repurchase of 722,104 shares and dividends of $0.06 per share totaling $3.1 million. Stockholders' equity to assets was 16.69% at December 31, 2015, compared to 17.62% at December 31, 2014. Book value per share increased to $10.72 at December 31, 2015 from $10.56 at December 31, 2014. Tangible book value per share increased to $10.47 at December 31, 2015 from $10.31 at December 31, 2014. Market price per share increased $2.88, or 25.7%, to $14.10 at December 31, 2015 from $11.22 at December 31, 2014. At December 31, 2015, the Company and the Bank continued to exceed all regulatory capital requirements.

As of December 31, 2015, the Company had repurchased 722,104 shares of its stock at an average price of $13.06 per share, or 26.4% of the 2,737,334 shares authorized for repurchase under the Company's repurchase program as adopted in August 2015. 

Meridian Bancorp, Inc. is the holding company for East Boston Savings Bank. East Boston Savings Bank, a Massachusetts-chartered stock savings bank founded in 1848, operates 29 full-service locations in the greater Boston metropolitan area. We offer a variety of deposit and loan products to individuals and businesses located in our primary market, which consists of Essex, Middlesex and Suffolk Counties, Massachusetts. For additional information, visit www.ebsb.com.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as "believes," "will," "expects," "project," "may," "could," "developments," "strategic," "launching," "opportunities," "anticipates,"  "estimates," "intends," "plans," "targets" and similar expressions. These statements are based upon the current beliefs and expectations of Meridian Bancorp, Inc.'s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, general economic conditions, changes in interest rates, regulatory considerations, and competition and the risk factors described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Meridian Bancorp, Inc.'s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.

MERIDIAN BANCORP, INC. AND SUBSIDIARIES  
Consolidated Balance Sheets  
(Unaudited)  
           
    December 31,  
      2015       2014    
    (Dollars in thousands)  
ASSETS          
Cash and due from banks   $ 96,363     $ 205,732    
Certificates of deposit     99,062       85,000    
Securities available for sale, at fair value     141,646       203,521    
Federal Home Loan Bank stock, at cost     10,931       12,725    
Loans held for sale     4,669       971    
           
Loans, net of fees and costs     3,078,647       2,677,376    
Less allowance for loan losses     (33,405 )     (28,469 )  
Loans, net     3,045,242       2,648,907    
           
Bank-owned life insurance     39,557       38,611    
Foreclosed real estate, net     -       1,046    
Premises and equipment, net     40,248       38,512    
Accrued interest receivable     8,574       7,748    
Deferred tax asset, net     21,246       15,610    
Goodwill     13,687       13,687    
Other assets     3,284       6,456    
           
Total assets   $ 3,524,509     $ 3,278,526    
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Deposits:          
Non interest-bearing   $ 370,546     $ 285,990    
Interest-bearing     2,372,472       2,217,945    
Total deposits     2,743,018       2,503,935    
           
Short-term borrowings     20,000       -    
Long-term debt     147,226       171,899    
Accrued expenses and other liabilities     26,139       24,982    
Total liabilities     2,936,383       2,700,816    
Stockholders' equity:          
Preferred stock, $0.01 par value, 50,000,000 shares authorized;          
none issued     -       -    
Common stock, $0.01 par value, 100,000,000 shares authorized;          
54,875,237 and 54,708,066 shares issued at December 31, 2015          
and 2014, respectively     549       547    
Additional paid-in capital     403,737       410,714    
Retained earnings     206,214       184,715    
Accumulated other comprehensive (loss) income     (2,092 )     2,898    
Unearned compensation - ESOP, 2,800,564 and 2,922,328 shares          
at December 31, 2015 and 2014, respectively     (20,282 )     (21,164 )  
Total stockholders' equity     588,126       577,710    
           
Total liabilities and stockholders' equity   $ 3,524,509     $ 3,278,526    

 

MERIDIAN BANCORP, INC. AND SUBSIDIARIES  
Consolidated Statements of Net Income  
(Unaudited)  
                   
    Three Months Ended December 31,     Years Ended December 31,  
      2015       2014       2015       2014    
    (Dollars in thousands, except per share amounts)  
Interest and dividend income:                  
Interest and fees on loans   $ 31,555     $ 27,650     $ 118,586     $ 103,814    
Interest on debt securities:                  
Taxable     297       505       1,608       2,468    
Tax-exempt     38       44       162       178    
Dividends on equity securities     422       378       1,638       1,425    
Interest on certificates of deposit     168       47       624       47    
Other interest and dividend income     159       261       724       747    
Total interest and dividend income     32,639       28,885       123,342       108,679    
Interest expense:                  
Interest on deposits     4,800       4,716       18,479       18,041    
Interest on short-term borrowings     5       -       5       -    
Interest on long-term debt     495       564       1,967       2,472    
Total interest expense     5,300       5,280       20,451       20,513    
Net interest income     27,339       23,605       102,891       88,166    
Provision for loan losses     544       1,829       6,667       3,313    
Net interest income, after provision for loan losses     26,795       21,776       96,224       84,853    
Non-interest income:                  
Customer service fees     2,114       1,953       7,923       7,492    
Loan fees     203       124       917       591    
Mortgage banking gains, net     119       126       535       532    
(Loss) gain on sales of securities, net     (57 )     1,847       2,432       6,258    
Income from bank-owned life insurance     295       297       1,225       1,165    
Other income     -       1       8       18    
Total non-interest income     2,674       4,348       13,040       16,056    
Non-interest expenses:                  
Salaries and employee benefits     11,618       10,340       44,737       41,407    
Occupancy and equipment     2,482       2,229       9,876       9,258    
Data processing     1,317       1,245       5,204       4,516    
Marketing and advertising     1,160       637       3,715       2,901    
Professional services     652       581       2,633       2,469    
Foreclosed real estate     109       275       234       438    
Deposit insurance     527       534       1,989       2,131    
Other general and administrative     1,322       1,184       4,303       4,314    
Total non-interest expenses     19,187       17,025       72,691       67,434    
Income before income taxes     10,282       9,099       36,573       33,475    
Provision for income taxes     3,407       3,062       11,966       11,148    
Net income   $ 6,875     $ 6,037     $ 24,607     $ 22,327    
                   
Earnings per share:                  
Basic   $ 0.13     $ 0.12     $ 0.47     $ 0.43    
Diluted   $ 0.13     $ 0.11     $ 0.46     $ 0.42    
Weighted average shares:                  
Basic     51,982,009       51,734,726       51,965,036       52,470,513    
Diluted     53,092,652       52,874,822       53,071,932       53,567,771    

 

MERIDIAN BANCORP, INC. AND SUBSIDIARIES
Net Interest Income Analysis
(Unaudited)
                             
      Three Months Ended December 31,  
    2015     2014
    Average       Yield/     Average       Yield/  
      Balance     Interest (1)   Cost (1)(6)     Balance   Interest (1)   Cost (1)(6)  
    (Dollars in thousands)
Assets:                            
Interest-earning assets:                            
Loans (2)   $ 2,995,593     $ 32,427     4.29 %   $ 2,566,110     $ 28,413     4.39 %
Securities and certificates of deposit     242,945       1,100     1.80       179,412       1,135     2.51  
Other interest-earning assets  (3)     78,836       159     0.80       361,295       261     0.29  
Total interest-earning assets     3,317,374       33,686     4.03       3,106,817       29,809     3.81  
Noninterest-earning assets     114,080                 123,467            
Total assets   $ 3,431,454               $ 3,230,284            
                             
Liabilities and stockholders' equity:                            
Interest-bearing liabilities:                            
NOW deposits   $ 308,105       455     0.59     $ 285,031       462     0.64  
Money market deposits     873,355       1,762     0.80       922,400       2,082     0.90  
Regular savings and other deposits     284,085       102     0.14       270,746       175     0.26  
Certificates of deposit     831,152       2,481     1.18       687,511       1,997     1.15  
Total interest-bearing deposits     2,296,697       4,800     0.83       2,165,688       4,716     0.86  
Borrowings     151,416       500     1.31       172,169       564     1.30  
Total interest-bearing liabilities     2,448,113       5,300     0.86       2,337,857       5,280     0.90  
Noninterest-bearing demand deposits     370,061                 292,580            
Other noninterest-bearing liabilities     24,285                 24,080            
Total liabilities     2,842,459                 2,654,517            
Total stockholders' equity     588,995                 575,767            
Total liabilities and stockholders' equity   $ 3,431,454               $ 3,230,284            
                             
Net interest-earning assets   $ 869,261               $ 768,960            
Fully tax-equivalent net interest income         28,386                 24,529        
Less: tax-equivalent adjustments         (1,047 )               (924 )      
Net interest income       $ 27,339               $ 23,605        
Interest rate spread (1)(4)           3.17 %           2.91 %
Net interest margin (1)(5)           3.39 %           3.13 %
Average interest-earning assets to average                            
interest-bearing liabilities         135.51   %             132.89   %    
                             
Supplemental Information:                            
Total deposits, including noninterest-bearing                            
demand deposits   $ 2,666,758     $ 4,800     0.71 %   $ 2,458,268     $ 4,716     0.76 %
Total deposits and borrowings, including                            
noninterest-bearing demand deposits   $ 2,818,174     $ 5,300     0.75 %   $ 2,630,437     $ 5,280     0.80 %
                             
                             
(1) Income on debt securities, equity securities and revenue bonds included in commercial real estate loans, resulting yields, and interest rate spread and net interest margin, are presented on a tax-equivalent basis. The tax-equivalent adjustments are deducted from tax-equivalent net interest income to agree to amounts reported in the consolidated statements of net income. For the three months ended December 31, 2015 and 2014, yields on loans before tax-equivalent adjustments were 4.18% and 4.27%, respectively, yields on securities and certificates of deposit before tax-equivalent adjustments were 1.51% and 2.15%, respectively, and yields on total interest-earning assets before tax-equivalent adjustments were 3.90% and 3.69%, respectively. Interest rate spread before tax-equivalent adjustments for the three months ended December 31, 2015 and 2014 was 3.04% and 2.79%, respectively, while net interest margin before tax-equivalent adjustments for the three months ended December 31, 2015 and 2014 was 3.27% and 3.01%, respectively.
(2) Loans on non-accrual status are included in average balances.
(3) Includes Federal Home Loan Bank stock and associated dividends.
(4) Interest rate spread represents the difference between the tax-equivalent yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.
(6) Annualized.                            

 

MERIDIAN BANCORP, INC. AND SUBSIDIARIES
Net Interest Income Analysis
(Unaudited)
                             
      Years Ended December 31,  
    2015   2014
    Average       Yield/     Average       Yield/  
    Balance   Interest (1)   Cost (1)     Balance   Interest (1)   Cost (1)  
    (Dollars in thousands)
Assets:                            
Interest-earning assets:                            
Loans (2)   $ 2,801,970     $ 121,859     4.35 %   $ 2,427,538     $ 106,519     4.39 %
Securities and certificates of deposit     268,398       4,719     1.76       188,543       4,732     2.51  
Other interest-earning assets  (3)     158,463       724     0.46       249,482       747     0.30  
Total interest-earning assets     3,228,831       127,302     3.94       2,865,563       111,998     3.91  
Noninterest-earning assets     114,081                 113,464            
Total assets   $ 3,342,912               $ 2,979,027            
                             
Liabilities and stockholders' equity:                            
Interest-bearing liabilities:                            
NOW deposits   $ 295,958       1,709     0.58     $ 249,919       1,489     0.60  
Money market deposits     928,712       7,663     0.83       879,211       7,812     0.89  
Regular savings and other deposits     281,389       459     0.16       267,145       690     0.26  
Certificates of deposit     745,866       8,648     1.16       678,443       8,050     1.19  
Total interest-bearing deposits     2,251,925       18,479     0.82       2,074,718       18,041     0.87  
Borrowings     146,364       1,972     1.35       189,247       2,472     1.31  
Total interest-bearing liabilities     2,398,289       20,451     0.85       2,263,965       20,513     0.91  
Noninterest-bearing demand deposits     335,060                 302,417            
Other noninterest-bearing liabilities     22,605                 20,325            
Total liabilities     2,755,954                 2,586,707            
Total stockholders' equity     586,958                 392,320            
Total liabilities and stockholders' equity   $ 3,342,912               $ 2,979,027            
                             
Net interest-earning assets   $ 830,542               $ 601,598            
Fully tax-equivalent net interest income         106,851                 91,485        
Less: tax-equivalent adjustments         (3,960 )               (3,319 )      
Net interest income       $ 102,891               $ 88,166        
Interest rate spread (1)(4)           3.09 %           3.00 %
Net interest margin (1)(5)           3.31 %           3.19 %
Average interest-earning assets to average                            
interest-bearing liabilities         134.63   %             126.57   %    
                             
Supplemental Information:                            
Total deposits, including noninterest-bearing                            
demand deposits   $ 2,586,985     $ 18,479     0.71 %   $ 2,377,135     $ 18,041     0.76 %
Total deposits and borrowings, including                            
noninterest-bearing demand deposits   $ 2,733,349     $ 20,451     0.75 %   $ 2,566,382     $ 20,513     0.80 %
                             
                             
(1) Income on debt securities, equity securities and revenue bonds included in commercial real estate loans, resulting yields, and interest rate spread and net interest margin, are presented on a tax-equivalent basis.  The tax-equivalent adjustments are deducted from tax-equivalent net interest income to agree to amounts reported in the consolidated statements of net income.  For the years ended December 31, 2015 and 2014, yields on loans before tax-equivalent adjustments were 4.23% and 4.28%, respectively, yields on securities and certificates of deposit before tax-equivalent adjustments were 1.50% and 2.18%, respectively, and yield on total interest-earning assets before tax-equivalent adjustments were 3.82% and 3.79%, respectively.  Interest rate spread before tax-equivalent adjustments for the years ended December 31, 2015 and 2014 was 2.97% and 2.88%, respectively, while net interest margin before tax-equivalent adjustments for the years ended December 31, 2015 and 2014 was 3.19% and 3.08%, respectively.
(2) Loans on non-accrual status are included in average balances.
(3) Includes Federal Home Loan Bank stock and associated dividends.
(4) Interest rate spread represents the difference between the tax-equivalent yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.

 

MERIDIAN BANCORP, INC. AND SUBSIDIARIES  
Selected Financial Highlights  
(Unaudited)  
                           
    At or For the Three Months Ended   At or For the Years Ended  
    December 31,   December 31,  
      2015         2014       2015     2014    
                           
Key Performance Ratios                          
Return on average assets (1)     0.80   %     0.75   %   0.74 %   0.75 %  
Return on average equity (1)     4.67         4.19       4.19     5.69    
Interest rate spread (1) (2)     3.17         2.91       3.09     3.00    
Net interest margin (1) (3)     3.39         3.13       3.31     3.19    
Non-interest expense to average assets (1)     2.24         2.11       2.17     2.26    
Efficiency ratio (4)     63.81         65.21       64.05     68.84    
                           
    December 31,     December 31,                
      2015         2014                  
                           
Asset Quality Ratios                          
Allowance for loan losses/total loans     1.08   %     1.06   %              
Allowance for loan losses/non-accrual loans     106.58         90.35                  
Non-accrual loans/total loans     1.02         1.18                  
Non-accrual loans/total assets     0.89         0.96                  
Non-performing assets/total assets     0.89         0.99                  
                           
Capital and Share Related                          
Stockholders' equity to total assets     16.69   %     17.62   %              
Book value per share   $ 10.72       $ 10.56                  
Tangible book value per share   $ 10.47       $ 10.31                  
Market value per share   $ 14.10       $ 11.22                  
Shares outstanding     54,875,237         54,708,066                  
                           
                           
(1) Annualized.  
(2) Interest rate spread represents the difference between the tax-equivalent yield on interest-earning assets and the cost of interest-bearing liabilities.  
(3) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.  
(4) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income excluding gains or losses on securities.  

Contact: Richard J. Gavegnano, Chairman, President and Chief Executive Officer       (978) 977-2211

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